BROKER?

Yes your referring to interlining freight .that is as far as I understand changed in 2013 when Obama signed map 21 you can read about new interlining laws at google 10 4 magazine map21 interlining.interlinng is now the original carrier has to have a hand in the transportation of shipment either p/u ,transport , or delivery can't have an outside carrier handle the entire pickup transport and delivery that is not interlining that is as far as I understand has changed.if not I as a motor carrier hand of loads all day and not be bonded and just call it interlining there would be no brokers they would all register as motor carriers and not have to be.bonded.but I might not be understanding what your doing.If your picking up and someone else is delivering that's is interlining and yes you can still do that and not be bonded.just conversation not trying to argue just how I understand it I could be way off

 

I found the article you are referring to on 10-4 written by Wayne Schooling. I would be more inclined to agree with him if he cited more than just MAP21, specifically the section of the bill that changed the regulations. I found the most recent version of 49 USC chapter 139 ss 13904, published in 2014 by the Government Publishing Office and the language is unchanged from the 2011 version I posted above. I believe the author of that article has his information incorrect. Yes, the bond amount for a broker was subject to increase, but a motor carrier authorized for property (non household goods) still does not need a bond, nor are they to be considered a broker.
https://www.gpo.gov/fdsys/pkg/USCOD...title49-subtitleIV-partB-chap139-sec13904.pdf

Pepper, I don't take your replies as argumentative, open discussion is a great way for all of us to learn something. As for your conjecture that no broker would get bonded and would instead just be motor carriers, that is not feasible since they would need to be fully qualified as a motor carrier, including public liability insurance, cargo, and all the other hurdles we carriers jump through which will cost much more than a $75,000 bond does. The $75k bond costs about $2,000 a year, their public liability policy would be 3 to 5 times that alone! They would also have to operate at least one truck, or lease one owner operator on to their authority so they would be a bona fide motor carrier. Brokers are in the business they are in and not motor carriers because they do not want the hassle or expense of operating trucks and employing drivers.

I still could be wrong about interlining, but I think your understanding of a motor carrier's right to conduct business as they need to, meaning arranging purchased transportation from outside carriers, is inaccurate. If I, or any other motor carrier with excess freight, had to qualify as a broker or forwarder to arrange service for our customers you would see a spike in the freight rates because I would need increased revenue to cover the increase in overhead brought on by the excessive regulation. The stated purpose of broker regulation is to protect the shipper from malice, and the only purpose of a broker being bonded is to have a remedy for motor carriers to use in the event of a default payment by the broker. So, if a motor carrier chooses to do business with another motor carrier they are willingly assuming the risk of non-payment, a protection I will gladly give up to not deal with a broker.

This is a great discussion, something different when it comes to our industry. I get so tired of the same old questions about entry, payment, how to find work, etc. I am happy to have this discussion and glad it has remained civil even though we have a difference of opinion.

 

To help clarify further, in the most current version of 49 US Code here are the definitions of broker and carrier.
§ 13102. Definitions In this part, the following definitions shall apply:
(1) BOARD.—The term ‘‘Board’’ means the Surface Transportation Board.
(2) BROKER.—The term ‘‘broker’’ means a person, other than a motor carrier or an employee or agent of a motor carrier, that as a principal or agent sells, offers for sale, negotiates for, or holds itself out by solicitation, advertisement, or otherwise as selling, providing, or arranging for, transportation by motor carrier for compensation.
(3) CARRIER.—The term ‘‘carrier’’ means a motor carrier, a water carrier, and a freight forwarder.

Notice that a broker is defined as a person other than a motor carrier, so that should clearly indicate that a motor carrier is not a broker nor acting as such when arranging for transportation of freight by motor carrier.

https://www.gpo.gov/fdsys/pkg/USCOD...title49-subtitleIV-partB-chap131-sec13102.pdf

 

One benefit of being a broker is if you have a local shipper who ships with you on a regular bases but do have enough truck to fill their need. Your brokerage could receive the excess loads and you would be responsible to find truck to cover them. You typically make a 10%-15% commission paid by the shipper. You would increase your value to the shipper.

 

It can make money.I think the biggest hurdle,(I may be wrong),seems like I heard about a cash bond of $10,000 dollars you had to put up,to get the million dollar cargo insurance and get the "broker license".Unless you "crutch" off of another licensed broker and "share" the take with him or her.I may be talking out of my a..,but this is what I was told.

 

Doesnt sound Legal? Almost reminds me of the gun nut selling guns at every gun show.These are his personal collection.No FFL required.While he technically "in the business".He's legal to sell his private collection.But,hey isnt he a "gun dealer"? You see him at every gun show with new stuff.Yet,he has NO FFL license! Maybe being a broker with no license,is legal if you switch it around enough?

 

I am new to this forum and trucking I hope it's ok for me to ask a question about this thread
I am a motor carrier. I have been hired by a waste water facility a to haul a certain number of gallons of water per day. We are not crossing state lines, actually within 100 air mile I have 3 intrastate carriers without MC numbers hauling for me under my authority b/c I thought they had to the manifests are written to my company I am paid then pay them a negotiated rate
Can they run under their DOT number instead?